Examining Racial and Gender Wealth Inequity: How Public Policy - PowerPoint PPT Presentation

Examining Racial and Gender Wealth Inequity: How Public Policy Promotes and Prevents Shared Prosperity in Our Communities California Budget and Policy Center’s Policy Insights 2019 THANK YOU TO OUR FOUNDING SUPPORTERS: March 27 th , 2019 | Sacramento, CA. www.womenswealthgap.org | @womenswealthgap | #womenswealthgap

Why the women’s wealth gap matters • A national conversation is underway about the social, political and economic rights of women. • It’s critical to the economic security of families, communities and the nation. • Our national conversation about inequality typically focus on income. • Closing the gender income gap is critical, but it’s not enough because it’s only part of the problem. Closing the Women’s Wealth Gap

The Women’s Wealth Gap • Today, the women’s wealth gap is much larger than the income gap. • It’s a chasm for women of color. • Black and Latinx women own pennies on the dollar compared to white men and women. Closing the Women’s Wealth Gap

Historical causes of the gap • To understand the gap, we need to look at our nation’s long history of racial and gender discrimination. • People of color and women have long been prohibited from building wealth due to de jure and de facto discrimination. • And the drivers of the women’s wealth gap are not behind us. Closing the Women’s Wealth Gap

Contemporary causes of the gap • Pay gap and lack of paid leave • Limited access to private and public sector benefits designed to help turn income into wealth • Asset limits force women to spend down savings • Women-owned businesses don’t produce wealth for their owners • Discrimination in mortgage markets Closing the Women’s Wealth Gap

Who benefits? • There’s no such thing as a “free market”—policies determine who wins … and who loses. • Many policies are blocking, rather than fueling women’s economic prosperity. • Now is the time to ask, “who benefits”? • If the answer isn’t women , then now is the time for change. Closing the Women’s Wealth Gap

Promising solutions • Advance pay equity, paid leave and supportive family care policies • Develop tailored financial products and services • Expand opportunities for women to save and invest • Increase access to public and private sector benefits • Regulate or eliminate predatory products and practices Closing the Women’s Wealth Gap

Policy Priorities • California priorities (2018): – Expansion of the CalEITC – Elimination of money bail – Rollout of CalSavers • National priorities (2019): – Paid leave – Family Self Sufficiency (FSS) program – Baby bonds Closing the Women’s Wealth Gap

Closing the Women’s Wealth Gap

Heather McCulloch | Founder & Executive Director Closing the Women’s Wealth Gap Initiative heather@womenswealthgap.org www.womenswealthgap.org @womenswealthgap Closing the Women’s Wealth Gap